Solana News Today: Pump.fun's PUMP token surges 30% on aggressive buyback strategy

Pump.fun’s native token PUMP has surged nearly 30% from its recent low of $0.0022 to above $0.0030, marking its first successful break above a key resistance level in seven days. The recovery follows the platform’s decision to allocate 98% of its daily revenue toward token buybacks, a strategic shift aimed at stabilizing the token amid a 70% decline from its July high of $0.0068 [1].

The PUMP token debuted on July 14 with an initial offering price of $0.0040 and quickly surged 70% to its peak of $0.0068 within two days. However, the momentum was short-lived. Selling pressure from institutional investors and delayed airdrop plans triggered a steep sell-off, pushing the token below its initial offering price within a week [1]. On July 25, the token hit its first all-time low of $0.0028, and further declines continued until it reached $0.0022 on July 29, a 67% drop from its peak [1].

Since July 16, Pump.fun has spent $21.5 million on token buybacks, using 129,100 SOL tokens to repurchase 3.828 billion PUMP tokens. The platform initially set aside $30.53 million in fees to fund the initiative [1]. On July 30 alone, 12,000 SOL—worth $2.16 million—was sent to the buyback wallet [1].

The strategy appears to be gaining traction. On Thursday, a single whale investor spent 17,542 SOL—approximately $3.16 million—to purchase PUMP at $0.00297, signaling renewed institutional confidence [1]. Notably, this investor had previously lost $125,000 on earlier positions in the token.

Cryptocurrency analyst Altcoin Sherpa has observed the recent price action, describing it as “some great strong moves lately” and suggesting the token could be building toward a potential “hated rally” [1]. Earlier, he had predicted the token would soon find its bottom, followed by a significant price movement.

Despite the positive developments, concerns persist about the consistency of the buyback strategy. Some users have criticized the approach as erratic, noting fluctuations in daily buyback amounts. The shift from $10 million in one-day purchases to sporadic $1 million buys has raised questions about whether the strategy is reactive to market sentiment rather than following a coherent plan [1].

PUMP now faces a critical test at the $0.0030 level, which has previously resisted multiple attempts to break through. The recent 12% surge on Thursday marked the first successful breach since July 22 [1]. Whether the token can sustain these gains will depend on continued buyback support and broader market sentiment.

The PUMP token’s trajectory highlights the volatility typical of the memecoin sector, where price movements are often driven by sentiment and community activity rather than traditional fundamentals. While the buyback program provides a potential floor for the token’s price, its long-term success will depend on maintaining adequate revenue and investor confidence.

Pump.fun’s aggressive buyback strategy, renewed institutional interest, and recent price rebound suggest the platform is attempting to stabilize the token after a turbulent start. However, the sustainability of the approach remains uncertain, and the token is still far from its July peak [1].

Source: [1] Pump.Fun Token Surges 30% From Recent Lows as Platform Implements Buyback Strategy (https://coinmarketcap.com/community/articles/688c3251800c5532345d7153/)